Euro data this morning offered up no new surprises – Eurostat’s second estimate of eurozone inflation for October was confirmed at +1.4%, down from +1.5% in September and well below the European Central Bank (ECB) target of just below +2%.
The core-inflation rate was down to +0.9%, largely due to a sharp slowdown in prices for services.
So not an encouraging release for ECB policy makers, who expect worse news to come before what they hope will be a turn for the better in mid-2018.
Details:
Eurozone: Oct CPI +0.1% m/m; +1.4% y/y
Eurozone: Oct CPI Forecast +0.1% m/m; +1.4%y/y
Eurozone: Oct Core CPI -0.1% m/m; +0.9% y/y
Eurozone Oct CPI Ex-Tobacco +0.1% m/m; +1.3% y/y
Euro under pressure
The ‘single’ unit is currently trading atop of its intraday euro session low at €1.1780, and remains under pressure, capped by its 50-period moving average at €1.1802.
The techies suggest that further weakness can be expected towards the horizontal support at €1.1760 at first. A clear break below this threshold would open the way towards the support at €1.1725 and €1.1700.
Only a rebound above the strong psychological resistance at €1.1805 would turn the intraday outlook to ‘bullish.’
